Cabot Corporation (NYSE: CBT) shares rose 11.74% on Wednesday to close at $79.28. The intraday movement followed the company’s release of its first-quarter fiscal 2026 financial results, which showed declines in both top-line revenue and net profitability compared to the previous year.
Market Capitalization
As of February 4, 2026, Cabot Corporation’s market capitalization is approximately $4.14 billion.
Latest Quarterly Results
For the first quarter of fiscal 2026, ended December 31, 2025, Cabot Corporation reported consolidated net sales of $849 million. This represents an 11.1% decrease from the $955 million reported in the first quarter of fiscal 2025. Net income attributable to the company fell to $73 million, a 21.5% decrease from $93 million in the prior-year period. Adjusted earnings per share (EPS) were $1.53, down from $1.76 year-over-year.
Segment performance for the quarter was as follows:
- Reinforcement Materials: Segment earnings before interest and taxes (EBIT) were $102 million, a 22% decrease from $130 million in the first quarter of fiscal 2025. Sales in this segment totaled $520 million, down 14.9% year-over-year, driven by lower volumes in the Americas and Asia Pacific.
- Performance Chemicals: Segment EBIT increased 6.7% to $48 million, up from $45 million in the prior-year period. Sales for the segment were $300 million, a 3.5% decline from $311 million. Growth in the Battery Materials product line and a favorable product mix supported EBIT results despite lower overall volumes in Europe.
Financial Trends
Full-Year Results Context
For the full fiscal year 2025, Cabot reported an adjusted EPS of $7.06, reflecting a directional trend of growth relative to fiscal 2024. However, the Q1 2026 results indicate a contraction in quarterly revenue and profit margins compared to the start of the previous fiscal year.
Business & Operations Update
Cabot Corporation announced a multi-year supply agreement with PowerCo SE, a battery subsidiary of the Volkswagen Group. Under the agreement, Cabot will supply conductive carbons and dispersions for lithium-ion battery applications. The company also initiated a restructuring program within its Performance Chemicals segment aimed at cost optimization and asset rationalization.
M&A or Strategic Moves
The company completed the acquisition of a carbon black manufacturing facility in Mexico for approximately $70 million. The move is intended to enhance regional capacity and serve tire customers in North America.
Equity Analyst Commentary
Institutional research from Zacks Equity Research noted that while Cabot’s quarterly revenue of $849 million missed the consensus estimate of $881.9 million, its adjusted EPS of $1.53 exceeded the analyst forecast of $1.40. Analysts cited lower volumes in the Reinforcement Materials segment as the primary driver for the revenue miss.
Guidance & Outlook
Management narrowed its adjusted EPS guidance for the full fiscal year 2026 to a range of $6.00 to $6.50 per share. Key factors to watch include the outcome of annual tire customer agreement negotiations and volume trends in the Battery Materials sector.
Performance Summary
Cabot Corporation shares closed higher by 11.74% today following a quarterly earnings beat on adjusted EPS. Net sales declined 11% to $849 million, and net income fell to $73 million. Performance Chemicals showed EBIT growth while Reinforcement Materials EBIT decreased by 22% due to lower global volumes.